Kratos Announces $33.6 Million Contract for NASA Nuclear Spacecraft Power System

Key Facts

Kratos announced on October 28 that it had secured a $33.6 million contract to design, build and deliver the power conversion system for NASA’s Space Reactor-1 Freedom spacecraft. The company said in an announcement published through GlobeNewswire that the contract covers the system that converts power to operate the spacecraft. Kratos will perform the work as a subcontractor to Sierra Lobo under NASA’s SpaceDOC III contract. The company is therefore supplying a power component for the program, while the announcement does not describe Kratos as NASA’s prime contractor. The agency is targeting a launch in late 2028 and arrival at its destination in 2029.

NASA describes the spacecraft as the first nuclear fission-powered spacecraft to travel beyond Earth orbit. The mission is headed to Mars, where the spacecraft will make a flyby and deploy a scientific payload. The payload includes SkyFall, three Mars helicopters developed from the design of NASA’s Ingenuity helicopter. That places the power system within a mission combining a test of nuclear propulsion with the delivery of exploration tools to Mars. The mission page sets 2029 as the arrival year, following a targeted launch in late 2028.

According to NASA specifications, the power conversion system Kratos will provide is designed to produce 20 kilowatts of electric power using a closed Brayton cycle. The agency says the spacecraft’s power and propulsion element generates 48 kilowatts of electric power. These systems convert reactor heat into electricity, which is then used to ionize and electromagnetically accelerate propellant. NASA says the resulting thrust is low, but enables sustained acceleration and high fuel efficiency. The agency also says nuclear electric propulsion could reduce the propellant mass needed for missions requiring a significant change in velocity compared with conventional chemical propulsion.

NASA says the mission will test nuclear electric propulsion and pave the way for technologies that could later be used to generate power on the surfaces of the Moon and Mars and to explore the outer solar system. The spacecraft’s reactor will remain inactive until it leaves Earth orbit, as part of safety measures that include joint reviews and continuous oversight. The Department of Energy’s Idaho National Laboratory is responsible for designing and developing the fission reactor. The power conversion system will integrate the reactor to complete the spacecraft’s nuclear power unit. NASA said the latest contracting actions are intended to “reduce technical risk and maintain momentum toward a 2028 launch.”

The contract comes as Kratos has recorded growth in revenue and space business. The company generated $1.347 billion in revenue in 2025, up 18.5% from 2024. Its space, training and cyber segment recorded organic revenue growth of 13.6% during the year. In the second quarter of 2026, revenue was $458.8 million, up 30.5% from $351.5 million in the same period of 2025. Organic revenue growth in that quarter was 19.1%.

The company recorded consolidated bookings of $492.2 million in the second quarter of 2026, while its backlog stood at $2.084 billion on June 28. Kratos raised its 2026 revenue guidance to a range of $1.750 billion to $1.810 billion. It also forecast annual organic growth of 18% to 23% compared with 2025. In trading, KTOS shares closed at $41.32 on October 27, compared with a close of $40.43 on October 26. The stock had closed at $38.74 on October 21.

Kratos is scheduled to report third-quarter results on November 5, the next scheduled update for investors on its financial performance. The upcoming results will provide a view of revenue, bookings and backlog after the company announced the power system contract for the SR-1 Freedom mission. The spacecraft’s targeted launch remains late 2028, with arrival at its destination in 2029. The mission includes testing nuclear power and propulsion technologies in space, alongside deploying the three helicopters near Mars. The contract announcement did not specify a delivery schedule for the power conversion system.